Cathay to axe 600 jobs by year-end

New Straits Times - - Business | World -

HONG KONG: Cathay Pa­cific Air­ways Ltd, Asia’s big­gest in­ter­na­tional air­line, will elim­i­nate 600 jobs as part of the big­gest re­vamp in two decades fol­low­ing its first loss in eight years.

The ma­jor­ity of the af­fected em­ploy­ees were in­formed yes­ter­day and most of the re­struc­tur­ing would be com­pleted by the end of this year, it said yes­ter­day.

No front­line em­ploy­ees, pi­lots or cabin crew would be af­fected, it added. The car­rier, af­fil­i­ated air­lines and other busi­nesses em­ployed 33,000 peo­ple as of June last year.

De­spite boom­ing de­mand for air travel in Asia, Cathay and Sin­ga­pore Air­lines Ltd are among pre­mium car­ri­ers reel­ing un­der in­tense com­pe­ti­tion from low­cost car­ri­ers, Chi­nese main­land ri­vals and Mid­dle-Eastern oper­a­tors such as Emi­rates.

Sin­ga­pore Air last week re­ported a sur­prise loss and an­nounced a “wide-rang­ing re­view” of its busi­ness as well.

“Every­one was be­com­ing more cost con­scious,” said An­drew Lee, an an­a­lyst at Jef­feries, here.

“To sur­vive, they need to con­trol costs. I think it is a start,” he said, re­fer­ring to Cathay.

The air­line will also re­struc­ture its cargo depart­ment by re­mov­ing the role of cargo di­rec­tor.

“We have to make tough but nec­es­sary de­ci­sion for the fu­ture of our busi­ness and cus­tomers,” said Ru­pert Hogg, who be­came chief ex­ec­u­tive of­fi­cer on May 1.

The job cuts would in­volve 190 man­age­rial po­si­tions, rep­re­sent­ing 25 per cent of man­age­ment, said Cathay.

The air­line has said it is tar­get­ing sav­ings of about 30 per cent from staff cost cuts at its head­quar­ters. Bloomberg

EPA PIC

Cathay Pa­cific Air­ways says it will cut 190 man­age­rial po­si­tions, rep­re­sent­ing 25 per cent of man­age­ment.

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